Boise, Idaho; Houston, Texas, Williston, ND, Duluth, MN

How to Choose the Best Real Estate Investment Locations 

No matter where you are, you want to invest in homes with a high return on investment. Buy property with the following attributes to enhance your real estate investment returns:

High rental occupancy: Check the local housing stock’s vacancy rate;

High rents: Rentals should cover as much of your mortgage as possible; and

A low tenant default rate: You don’t want to buy property where tenants routinely miss rent payments.

Real estate investing needs extensive research. Market timing matters in cities with high rental income potential but little inventory. That makes it hard to discover and close a deal that meets your investing criteria. Thus, act quickly and carefully.

Do you want to buy in a booming, stable, or decreasing real estate market? Buy and hold or short-term capital gains? To make it easy, we recommend contacting an investment consultant that can help you invest in some of the greatest US real estate markets.

These 21 Real Estate Investment Hotspots for 2023

Due to expected price rises, some markets are worth researching if you’re thinking about investing in real estate this year. This list of the 21 greatest real estate investment markets in 2023 is based on US data and trends. Here are the greatest real estate investment and rental property markets. All have pros and cons, but many are cheaper than the national average.

1. Boise

Boise, Idaho’s capital, is attracting real estate investors for various reasons. Boise’s robust job market, affordable housing, rising population, stable real estate market, and low property taxes attract investors. Investors can buy rental properties or invest in real estate for capital appreciation in Boise.

Why Boise is a top real estate investment destination:

Real Estate Appreciation: NeighborhoodScout’s research shows that Boise, Idaho’s real estate market has grown at 217.86% and 12.26% annually over the past decade, placing it in the top 10% nationally. Boise’s latest quarter had a 3.87% appreciation rate, equivalent to 16.41% annually, despite a 7.62% yearly appreciation rate. This rate is lower than 80% of Idaho cities and villages. These are citywide averages, although Boise communities vary widely in investment possibilities.

Technology, healthcare, and education jobs fuel Boise’s economy. New population and an expanding job market boost house demand and property values.

Affordable housing: First-time homebuyers and investors prefer Boise because it has more affordable housing than other major US cities. Investors may receive regular rental income and capital appreciation.

Boise’s good quality of life, outdoor activity, and low cost of living are attracting individuals. This rising population increases housing demand and property values. 

Stable real estate market: Boise has a low foreclosure rate and consistent property price appreciation. It appeals to investors seeking stability and dependability.

In December 2022, the median listing home price in Boise, ID was $528.9K, down 2.9% year-over-year. Median listing property price per square foot was $292. In December 2022, Boise, ID had more buyers than homes.

A sales-to-listings ratio exceeding 0.2 favors sellers. Boise, ID homes sell in 62 days. Boise, ID median days on market have increased since the previous month and somewhat since last year. Boise housing market trends are based on listings for single-family, condo, and townhome properties. Land, multi-unit, and other properties are excluded.

Houston, Texas,

Houston is a top real estate market. US oil and gas jobs are plentiful in this city. Houston, Texas’ fifth-largest metro area, has over 7.2 million citizens and is growing at over double the national rate. Houston has 41 Fortune 1000 headquarters. Houston ranks fourth in the nation, behind Greater New York, Chicago, and Dallas-Ft. Worth. Strong macroeconomic variables drive Houston’s housing market.

Houston is a good real estate market for various reasons. 

Some reasons:

Houston’s broad economy, including a strong petroleum sector, medical center, and aerospace industry, attracts new inhabitants and creates jobs.

Affordable housing: Houston has affordable housing compared to other big cities, offering rental and flipping options.

Houston is one of the fastest-growing cities in the U.S., and housing demand is rising.

Texas has no state income tax, making it more attractive to inhabitants and businesses and possibly increasing housing demand.

Houston’s real estate market is strong and appreciating, offering investors long-term growth and stability.

Houston Real Estate Trends: In December 2022, Houston’s median listing price was $340K, up 3.1% year-over-year. Median listing property price per square foot was $174. In December 2022, Houston, TX had a balanced housing market.

The market’s sales-to-listings ratio was 0.12–0.2. Houston, TX homes sell in 59 days. Houston, TX median days on market have increased from the previous month and marginally since last year. Houston housing market trends are based on listings for single-family, condo, and townhome properties. Land, multi-unit, and other properties are excluded.

And there you have it

And there you have it. The top two real estate investment markets in the United States in 2023. Other real estate markets to keep an eye on include Williston, North Dakota, where another oil boom has been predicted. Now that OPEC is shutting off their spigots again.

Also Duluth, Minnesota, has just passed a city ordinance that makes it extremely easy to set up cloud storage services in their chilly city on the lake. This is expected to draw Silicon Valley entrepreneurs by the bus load. Real estate prices will then go through the roof.